EXHIBIT 12
BLACK HILLS CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(Dollars in thousands)
|
|
Year Ended |
Three Months Ended | ||||||||||||
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|
December 31, |
March 31, | ||||||||||||
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|
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| ||||||||||||
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|
2008 |
2007 |
2006 |
2005 |
2004 |
2009 |
2008 | |||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings as defined in Regulation S-K – |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations |
$ |
(52,037) |
$ |
75,658 |
$ |
55,772 |
$ |
50,072 |
$ |
44,608 |
$ |
25,625 |
$ |
11,816 |
|
Income tax expense (benefit) |
|
(29,395) |
|
32,427 |
|
23,103 |
|
26,633 |
|
19,713 |
|
6,023 |
|
5,801 |
|
(Income) loss from equity investee |
|
(4,366) |
|
1,231 |
|
(1,653) |
|
(14,325) |
|
386 |
|
327 |
|
(232) |
|
Income (loss) from continuing operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
before non-controlling interest in subsidiaries, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
earnings from equity investees, and income taxes |
|
(85,798) |
|
109,316 |
|
77,222 |
|
62,380 |
|
64,707 |
|
31,975 |
|
17,385 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed charges |
|
59,392 |
|
34,520 |
|
35,018 |
|
28,122 |
|
25,210 |
|
20,219 |
|
10,222 |
|
Amortization of capitalized interest |
|
48 |
|
93 |
|
63 |
|
— |
|
— |
|
1 |
|
4 |
|
Distributed income of equity investees |
|
1,781 |
|
3,724 |
|
4,304 |
|
12,956 |
|
3,762 |
|
2,360 |
|
1,473 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest capitalized |
|
(1,318) |
|
(2,323) |
|
(1,571) |
|
— |
|
— |
|
(93) |
|
(384) |
|
Preference security dividend requirements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of consolidated subsidiaries |
|
— |
|
— |
|
— |
|
(241) |
|
(472) |
|
— |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings as defined |
$ |
(25,895) |
$ |
145,330 |
$ |
115,036 |
$ |
103,217 |
$ |
93,207 |
$ |
54,462 |
$ |
28,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Charges as defined in Regulation S-K – |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
$ |
54,123 |
$ |
25,181 |
$ |
29,946 |
$ |
26,607 |
$ |
24,021 |
$ |
18,901 |
$ |
9,194 |
|
AFUDC interest |
|
2,811 |
|
6,415 |
|
2,972 |
|
694 |
|
165 |
|
838 |
|
335 |
|
Interest capitalized |
|
1,318 |
|
2,323 |
|
1,571 |
|
— |
|
— |
|
93 |
|
384 |
|
Estimate of interest within rental expense |
|
1,140 |
|
601 |
|
529 |
|
580 |
|
552 |
|
387 |
|
309 |
|
Fixed Charges as defined |
|
59,392 |
|
34,520 |
|
35,018 |
|
27,881 |
|
24,738 |
|
20,219 |
|
10,222 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preference security dividend requirements |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of consolidated subsidiaries |
|
— |
|
— |
|
— |
|
241 |
|
472 |
|
— |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Charges and Preference Security |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend as defined |
$ |
59,392 |
$ |
34,520 |
$ |
35,018 |
$ |
28,122 |
$ |
25,210 |
$ |
20,219 |
$ |
10,222 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of Earnings to Fixed Charges(a) |
|
(0.44) |
|
4.21 |
|
3.29 |
|
3.70 |
|
3.77 |
|
2.69 |
|
2.81 |
|
|
|
|
|
|
|
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|
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|
Ratio of Earnings to Fixed Charges and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preference Security Dividend(a) |
|
(0.44) |
|
4.21 |
|
3.29 |
|
3.67 |
|
3.70 |
|
2.69 |
|
2.81 |
______________________________________
|
(a) |
The earnings as defined in 2008 would need to increase $85.3 million for the 2008 ratios to be 1.0. |